UPDATE 10-U.S. crude ends lower for record 11th consecutive session


* Saudi Arabia says sees need for 1 mln bpd cut in output

* Trump hopes OPEC won't cut output, says prices should belower

* OPEC producers mull supply reductions for 2019

* OPEC reacts to 20 pct price fall since early October

* U.S. oil output, storage & drilling: https://tmsnrt.rs/2DhQOCB (Updates with settlement prices, recasts first paragraph, addspost-settlement trading)

By Jessica Resnick-Ault

NEW YORK, Nov 12 (Reuters) - U.S. crude prices fell for the11th consecutive session, the most on record since the contractbegan trading, retreating from a rally early in the session asU.S. President Donald Trump said he hoped there would be no oiloutput reductions.

Trump's comment followed remarks from Saudi Arabia's energyminister saying OPEC was considering cutting supply next year,citing softening demand. Saudi Arabia has expressed concernsthat U.S. sanctions have removed less oil from the market thanexpected. urn:newsml:reuters.com:*:nL8N1XN1LS

U.S. benchmark West Texas Intermediate crude CLc1 fell 26cents a barrel to settle at $59.93. The fall marked the 11thconsecutive daily decline, the most since the contract begantrading, according to data from CME Group. The contractcontinued to drop in post-settlement trading, falling $1.48 to$58.71 a barrel by 3:34 p.m. EST (1834 GMT).

Brent crude futures LCOc1 reversed course late in thesession, settling down 6 cents at $70.12 a barrel. Brent alsotraded lower in post-settlement activity, dropping $1.13 to$69.05 a barrel.

"Hopefully, Saudi Arabia and OPEC will not be cutting oilproduction," Trump wrote on Twitter. "Oil prices should be muchlower based on supply!" urn:newsml:reuters.com:*:nL2N1XN0V7 U.S. crude turned negativeand extended losses after the tweet.

Oil prices had strengthened early in the session, afterSaudi Arabia said the Organization of the Petroleum ExportingCountries and its partners believed demand was softening enoughto warrant an output cut of 1 million barrels per day next year.

Saudi Energy Minister Khalid al-Falih said OPEC and itsallies agree that technical analysis shows a need to cut oilsupply next year by around 1 million bpd from October levels. urn:newsml:reuters.com:*:nL8N1XN1LS

Saudi Arabia, the world's largest oil exporter, said onSunday it would cut its shipments by half a million bpd inDecember due to seasonal lower demand. urn:newsml:reuters.com:*:nL8N1XM09E

"We're kind of back to square one: It must feel likeNovember 2016 to them, a lot," said John Kilduff, a partner atAgain Capital Management in New York, referring to the timeperiod when OPEC and its allies agreed to initiate productioncuts. "The Saudis and Russians, especially, rushed production tomarket to offset losses that aren't materializing."

The market had anticipated that exports from OPEC memberIran would fall precipitously following the institution of U.S.sanctions in November. However, the U.S. has granted waivers tocertain major importers of Iranian crude, diminishing theexpected cuts. urn:newsml:reuters.com:*:nL4N1XG2LY

OPEC and the International Energy Agency release theirrespective monthly reports on the outlook for oil supply anddemand later this week. OPEC/MIEA/M

Oil prices have fallen around 20 percent in the last month,hit by an increase in global supply and the threat of a slowdownin demand, especially from customers whose currencies haveweakened against the dollar and eroded their purchasing power.

Output from the world's top oil producers Russia, the UnitedStates and Saudi Arabia has risen by 1.05 million bpd in thelast three months, based on official output figures. PRODN-SAC-RU-OUTC-OUT-T-EIA

This has left OPEC scrambling to adjust its own output,which, at around 33.3 million bpd, accounts for roughly a thirdof global supply.

An official from group member Kuwait said on Monday majoroil exporters had over the weekend "discussed a proposal forsome kind of cut in (crude) supply next year", although theofficial did not provide any detail. urn:newsml:reuters.com:*:nB2N1WR02M

One of OPEC's biggest problems is the surge in U.S. output.

"One thing that is abundantly clear, OPEC is in for a shaleshocker as U.S. crude production increased to a record 11.6million barrels per day and will cross the 12 million thresholdnext year," said Stephen Innes, head of trading for Asia-Pacificat futures brokerage Oanda in Singapore.

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GRAPHIC: U.S. oil production, drilling & storage levels   https://tmsnrt.rs/2QCiGoO
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(Additional reporting by Henning Gloystein in SINGAPORE andAmanda Cooper in London; Editing by Marguerita Choy and ChizuNomiyama) ((Jessica.Resnick-Ault@thomsonreuters.com; 646-223-6052;))




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